Saturday 19 May, 2018

Por Eugenia Iglesias

Friday 18 May, 2018

Por Jayson McNamara

Friday 18 May, 2018

Por Jayson McNamara

Subte underground users and gas consumers were gifted some reprieve from rising prices this week, as the national government faces growing pressure over the rising cost of living.

A City court on Tuesday agreed to temporarily block an increase in the cost of a standard fare on Buenos Aires' underground transport system known as the subte. The standard fare was set to rise Tuesday from 7.50 pesos to 11 pesos (US$ 0.53c).

Oil companies want to see a a six to 10-percent “recomposition” in prices, in line with changing local and international economic scenarios.

The government is hopeful that YPF, which is controlled by the Argentine State, will freeze prices for two months forcing its competitors to do the same.

HEADACHE

Price hikes have been a political headache for the national government in recent weeks.

Opposition lawmakers will on Wednesday try again to stop the government's roll-back of subsidies on utility bills, while members of his own coaliton have also put pressure on the Mauricio Macri administration.

In an economic sense, the government is walking a fine line. Inflation in the first three months of 2018 accounts for 45 percent of the government's annual inflation target of 15 percent.